Europe's passenger car demand dropped in January, data from the European Automobile Manufacturers' Association, or ACEA, showed on Tuesday.
Passenger car registrations contracted 7.5 percent year-on-year in January. Sales totaled 956,779 units.
The Brussels-based ACEA said major changes in taxation was announced by some EU member states for 2020 that pulled registrations forward in December and led to the decline in January.
The uncertainty caused by UK's departure from the European Union and weakening of global economic conditions were also the contributing factors, the agency added.
Car sales dropped 13.4 percent year-on-year in France, the strongest fall among the main markets, and by 7.6 percent in Spain. Sales declined by 7.3 percent in Germany and 5.9 percent in Italy.
UK car registrations decreased 7.3 percent annually in January.